7 Questions to Ask Before Signing a Michigan Buyer Agreement
You find a promising home in Grand Rapids and want to see it tonight. Before the door opens, your agent sends a buyer agreement for your signature.
That timing can make the document feel like a formality. It is not.
A written buyer agreement defines the work a real estate professional will perform and the compensation connected to that work. For many agents who use an MLS, a written agreement is required before an in-person or live virtual home tour. The terms are negotiable, and you should understand them before you sign.
The quick answer
Before signing a Michigan buyer agreement, ask who represents you, what properties and services the agreement covers, whether it is exclusive, when it expires, how compensation is calculated, what happens with homes you find yourself, and how the relationship can be changed or ended.
The agency disclosure and the service agreement do different jobs. Michigan requires real estate licensees to explain available agency relationships before a prospective buyer or seller shares transaction-specific confidential information. A buyer service agreement sets the actual terms of the working relationship. Read both, keep completed copies and ask for plain-language answers to anything that is unclear.
For more background, read our Michigan Buyer & Seller Agency Guide.
Avila Home Group expert insight: A buyer agreement should not be introduced as paperwork standing between you and a showing. It is the beginning of the professional relationship. The right time to discuss it is before speed or emotion makes the decision harder.
Why this conversation matters in West Michigan
Grand Rapids remains active, but the market is not moving at one speed. Redfin’s market data, for the three months ending September 2026, reported a median sale price of $309,852 and a median of 9 days on market. It also reported that 45% of homes sold above list price while 37.1% of listings had price drops. In other words, some homes attract immediate competition and others create room for a more measured negotiation.
Financing conditions also affect the total cost of a purchase. Freddie Mac reported a national average 30-year fixed mortgage rate of 7.40% and a 15-year rate of 6.71% on October 15, 2026. Those are national survey averages, not a quote for a particular buyer.
When a well-priced home appears, the decision window can be short. Settling representation, compensation and communication expectations before touring helps you focus on the property instead of trying to interpret a contract in the driveway.
1. What document am I signing, and who represents me?
Start by asking the agent to identify every document and its purpose.
Michigan's agency disclosure explains the types of agency relationships available and the duties connected to them. A buyer service agreement establishes the services and obligations agreed to by the buyer and broker. A touring agreement may be narrower than a full representation agreement, but its scope, fees and continuing obligations still matter.
Ask:
Are you representing me as a buyer's agent?
Is another agent in your brokerage connected to the seller?
Could designated agency or disclosed dual agency apply?
Who supervises the relationship?
What information will remain confidential?
Do not share your maximum budget, urgency, negotiating ceiling or other sensitive transaction details until you understand the agent's role. Michigan law requires agency options and duties to be disclosed before a potential client shares transaction-specific confidential information.
2. Which properties, locations and purchases are covered?
The agreement should define its scope. It may cover a geographic area, property type, price range or particular home. It may also address properties found through different channels.
Ask whether the agreement covers:
Homes listed in the MLS
For-sale-by-owner properties
New construction and builder communities
Off-market opportunities
Auctions or bank-owned properties
Homes you discover without the agent
Purchases elsewhere in Michigan
This question matters when buyers are looking across Grand Rapids, Wyoming, Kentwood, Grandville, Rockford or other West Michigan communities. A broad search should not automatically create confusion about which broker is responsible for which work.
If you plan to visit a builder, discuss representation before registering or touring. The builder's sales representative works for the builder, not automatically for you, and builder registration procedures may affect whether your agent can participate.
3. What services are included before and after an offer?
Our West Michigan Home Buyer Guide outlines the broader process. Touring is only one part of buyer representation. Ask for a practical description of what the agent will do from planning through closing.
Services may include:
Clarifying your search criteria and timeline
Coordinating with your lender
Identifying and scheduling property tours
Reviewing available disclosures and property information
Providing comparable market context
Preparing and presenting offers
Explaining negotiation options and contract deadlines
Coordinating inspections, appraisal, title work and closing steps
Also ask what is not included. An agent can explain a real estate process and the practical effect of common terms, but legal, tax, engineering and lending questions may require the appropriate licensed professional.
Avila Home Group expert insight: The value of buyer representation is easiest to evaluate when the services are specific. “I will help you buy a house” is vague. A written plan for property evaluation, offer strategy, deadlines and transaction coordination is something a buyer can actually compare.
4. Is the agreement exclusive, and how long does it last?
Duration and exclusivity are negotiable. NAR does not require one particular contract length or an exclusive arrangement. Michigan rules require a service provision agreement to include a definite expiration date.
Look for:
The exact start and expiration dates
Whether the agreement is exclusive or nonexclusive
The areas and property types included
Any automatic extension language
What happens if you pause your search
Whether a shorter or property-specific agreement is available
An exclusive agreement can support a committed working relationship, but it can also create overlapping obligations if you sign with another broker. Before signing anything new, review any agreement already in effect and resolve possible overlap in writing.
5. How is compensation calculated, and who might pay it?
Buyer-agent compensation is fully negotiable and is not set by law. Under NAR's written-agreement rules, the compensation must be stated as a clear, objectively determinable amount or rate. It cannot simply be “whatever the seller offers,” and an MLS participant may not receive more than the amount or rate agreed to with the buyer.
Ask:
What is the total fee or rate?
When is the fee earned?
When is payment due?
Could a seller or listing broker pay some or all of it?
If another party pays less than the agreed amount, could I owe the difference?
Are any retainer, touring, cancellation or administrative fees involved?
How would compensation be handled if I do not buy a home?
Here is a simple illustration, not a quote or recommended fee: if a buyer agreement establishes an $8,000 fee and the seller or listing broker agrees to pay $5,000, the buyer could be responsible for the remaining $3,000 if the agreement requires it. The buyer may be able to negotiate for seller-paid compensation in an offer, but the seller is not required to accept that request.
Do not wait until offer night to calculate a possible payment gap. Ask your lender how any buyer-paid amount could affect cash to close and loan requirements. Use our Monthly Affordability tool as an educational starting point.
6. What happens at an open house, with a builder or when I find the home myself?
Under NAR guidance, you do not need a written buyer agreement merely to visit an open house on your own or to ask an agent about their services. A private tour with an MLS participant who is working with you is different: the written agreement must be in place before an in-person or live virtual tour.
The agreement should also explain whether it applies when:
You meet the listing agent at an open house
You contact a builder directly
You find a for-sale-by-owner home
A friend sends you an off-market opportunity
You identify the property through a website or app
Finding a property is not the same as completing the work required to purchase it. Still, the agreement should make clear whether the broker's compensation applies and what services the broker will provide in each situation.
7. How can the agreement be changed or ended?
Do not assume you can cancel at any time without a cost or continuing obligation. Read the actual termination language.
Ask:
Can either party end the agreement?
Is mutual written consent required?
How much notice is needed?
Are there cancellation fees?
Does a protection or carryover period apply after termination or expiration?
Which properties would remain covered during that period?
Would a pending purchase agreement be affected?
Representation agreements and purchase agreements are separate contracts. Ending one does not automatically cancel the other. If a dispute involves contract rights, compensation or a pending transaction, consult a Michigan real estate attorney.
Use the Avila CLEAR check before you sign
The seven questions above can be reduced to one final review:
C: Compensation: The exact fee or rate, who may pay it, when it is earned and any possible buyer-paid gap
L: Limits: The locations, properties, price range, duration and exclusivity covered
E: Expectations: The services included, communication plan and buyer responsibilities
A: Agency: Who represents you, how conflicts are handled and what information remains confidential
R: Release: How the agreement can change or end, plus any fee or protection period that survives
Every blank should be completed before you sign. Keep a copy of the final, signed agreement and any written changes.
A fair-housing note for the home search
Representation should be consistent, transparent and based on the buyer's stated property goals, financial plan and lawful search criteria. A real estate professional should not steer buyers toward or away from communities based on protected characteristics or the agent's compensation.
When evaluating locations, use objective resources for matters such as commute, taxes, municipal services and school information, then decide what fits your priorities. Avila Home Group provides services in accordance with federal, state and local fair-housing requirements.
Tour with a clear plan
A buyer agreement is not something to rush through because a house is waiting. It is the document that should make your working relationship understandable before a high-stakes decision arrives.
Ask the seven questions. Use the CLEAR check. Confirm the terms in writing. Then tour with a plan.
If you are preparing to buy in Grand Rapids, Kent County or another West Michigan community, Avila Home Group can walk through the representation options, services and compensation terms before you commit.
Call or text Sam Avila at 616-229-5082, or schedule a buyer strategy conversation.
Every move begins with a plan.
This article provides general educational information, not legal, tax or lending advice. Your signed documents and applicable law govern your transaction. Consult a Michigan real estate attorney regarding contract rights or disputes. Mortgage rates, market conditions and program requirements can change.
Explore our Buyer Resources and West Michigan Real Estate FAQ for more planning help.
Frequently Asked Questions
Do I need a buyer agreement before touring a home in Michigan?
If an MLS participant is working with you as a buyer, NAR's practice rules require a written agreement before an in-person or live virtual home tour. Brokerage, MLS and state requirements may also apply.
Do I need an agreement to attend an open house?
Not merely to visit an open house on your own or ask the host about their services. Confirm whom the host represents before sharing private financial or negotiating information.
Is a Michigan agency disclosure the same as a buyer agreement?
No. The agency disclosure explains available agency relationships and related duties. A buyer service agreement establishes the specific working terms, services, compensation and other obligations.
Must a buyer agreement be exclusive?
NAR does not require one specific type of relationship. Exclusivity is a contract term to review and negotiate with the broker, subject to Michigan law and brokerage policy.
How long does a Michigan buyer agreement last?
The parties negotiate the duration. Michigan rules require a service provision agreement to have a definite expiration date. Confirm the start date, end date and any continuing obligations.
Are buyer-agent commissions fixed by law?
No. Broker fees and commissions are negotiable and not set by law. The written agreement should clearly state the amount or rate and how it is determined.
Does the seller always pay the buyer's agent?
No. A seller or listing broker may agree to pay some or all of the buyer-broker compensation, and a buyer may request compensation in an offer. The buyer remains responsible according to the signed agreement if another source does not cover the agreed amount.
Can I change or cancel a buyer agreement?
The buyer and broker may agree to change it. Cancellation rights, notice, fees and continuing obligations depend on the actual contract, so obtain any change or release in writing.
Does a buyer agreement cover new construction or for-sale-by-owner homes?
It may. Ask whether builders, for-sale-by-owner properties, off-market homes and properties you find yourself are within the agreement's scope.
Can an agent skip homes that offer less compensation?
A REALTOR® must put the client's interests first and may not steer based on broker compensation. Discuss any possible payment gap in advance so compensation does not become a surprise during the search.
Sources
Sources checked October 20, 2026.
